What changed
This master circular consolidates all FCRA instructions issued up to June 30, 2010, replacing the previous circular of July 1, 2009. No new policy changes were introduced; it merely compiles existing obligations for easier reference.
What it means for you
Banks must continue strict compliance with FCRA provisions, ensuring only MHA-registered or prior-permission holders receive foreign contributions. Designated branch rule and half-yearly reporting remain mandatory. Non-compliance risks regulatory action.
What you must do
- Verify that recipient associations are registered with MHA or have prior permission before crediting foreign contributions.
- Ensure only designated branches accept foreign contributions for associations.
- Submit half-yearly reports on foreign contribution receipts to the Central Government in the prescribed format.
- Train staff on FCRA provisions and common irregularities to avoid violations.
Who it affects
All scheduled commercial banks (excluding RRBs), All India Financial Institutions, Branches handling foreign inward remittances for associations
What is the key requirement for banks under FCRA?
Banks must ensure that associations receiving foreign contributions are registered with the Ministry of Home Affairs or have prior permission, and that only designated branches handle such transactions.
How often must banks report foreign contributions?
Banks must submit a half-yearly report on foreign contribution receipts to the Central Government, as per the format in the circular.
Does this circular introduce new rules?
No, it consolidates existing instructions issued up to June 30, 2010, without adding new requirements.